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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Defrocked who wrote (1535)	5/9/2000 10:23:00 AM
From: John Pitera	Respond to of 33421

FROM THE BULLS: ?Every presidential election year ? over the last 50 years ? the Dow Jones Industrial Average has had a positive return from May to December, so I think we?ve got a little bit of history on our side,? says ROBERT FROEHLICH of the KEMPER FUNDS. ?It seems like the policy-makers tend to figure out to get things hitting on all cylinders when that election year comes into full being. So it?s going to be choppy, but I think the market is going to have a bias to the upside.? (CNBC "Market Wrap", 5/8) FROM THE BEARS: ?The reason that I'm saying we're in a bear market is that every one of the averages has rolled over, whether it's the advance-decline index, the Dow Jones utilities, boom, boom, boom, boom,? says ARTHUR GRAY of CARRET & COMPANY. ?And the last one was the NASDAQ. Now every time they rally, the top of the rally's a little bit lower than the rally before. So you see this downtrend taking place in everything. And that to me is a bear market.? (CNN "Moneyline" 5/8) ?I think all the high P/E type stocks will be in trouble as the Fed slows down this economy,? says MARK LAY of MDL CAPITAL MANAGEMENT. ?A lot of people now are talking about the strong growth that we?re currently still seeing in the economy, but in the second half of the year we?ll start seeing the effects of those higher interest rates.? (CNBC "Market Wrap", 5/8) ?Despite the entrenched optimism in the market, investors will not be able to ignore a more aggressive Federal Reserve,? says SUNG WON SOHN at WELLS FARGO. (The Washington Post, 5/9) FORECASTS & PREDICTIONS: "The next rally in the stock market should be a couple to a few months away," says JEFFREY APPLEGATE of LEHMAN BROTHERS. That's because he thinks the Fed will raise rates by a total of 1.25 percentage points through the summer and 'the market appears to be priced for about half that." (The Wall Street Journal, 5/9)